One in six self-employed claim they were rejected for a mortgage due to employment status
One in six (17%) self-employed mortgage applicants have said they were declined for a mortgage because they run their own business, according to mortgage broker Haysto.
It also found that a further 15% of sole traders, and 14% of directors of limited companies, said they were turned down because of their job role and that despite record levels of mortgage applications, the number of rejections is also on the rise.
Paul Coss, co-founder of Haysto, said: “Getting a mortgage when you’re self-employed can be difficult, as mortgage lenders tend to prefer people in full-time employment because it’s easy and simple to understand their income. Being self-employed, your income isn’t as straightforward, and people shouldn’t be penalised for that.
“Despite self-employed people usually earning more money than if they were on a salary, mortgage lenders just aren’t set up to deal with complex incomes. That’s why at Haysto we support people who are left to one side in helping make their dream of owning their own home a reality.
“There are five million self-employed people in the UK and this number is increasing due to COVID.
“We don’t think it’s fair that mortgages should be more difficult if you choose to earn your living this way.”